Who knew a donut could actually help you stick to your budget?
Every now and then, my husband picks up a donut for breakfast. I usually avoid joining him because I think they’re too fattening and high in calories. But yesterday, I decided to indulge in a donut since it was such a light day for sweets.
I chose a delicious glazed chocolate donut for my treat. After savoring every bite, something interesting happened: I felt really pampered and satisfied. I used those positive feelings to get a lot done:
– I quickly tidied up the house.
– I prepared an exam for the MBA Finance class I’m teaching.
– I did a load of laundry.
Now, let’s flip this experience and see if it can help with managing money.
Rewards and Research
Research shows that when you’re trying to develop a new habit, rewarding yourself for your successes is key to reinforcing positive behavior.
When I help others with their financial goals, I always suggest keeping a list of low-cost rewards to use whenever you hit a financial milestone. For instance, track all your expenses for a week and then reward yourself. Or, pay triple the minimum on a credit card debt and treat yourself to something nice. These rewards serve as motivators to keep you on track.
Managing your finances is tough and often takes a lot of time. The payoff can feel far away, especially if you’re dealing with a lot of debt or a low-paying job. Paying off debt or saving for an emergency fund can take a while. Giving yourself small rewards along the way makes it easier to stay motivated.
What are Your Rewards?
Challenge yourself this week to set a financial goal. Write it down. If you don’t write it down, you’re less likely to achieve it.
Next, take a moment to list some low-cost rewards. If you’re trying to lose weight, maybe skip the donut.
One of my favorite rewards is a trip to the dollar store. There are plenty of treats there for just a buck. Some rewards are even free, like giving yourself an extra hour of “me” time to do something you enjoy, whether it’s a craft, a hike, reading a magazine, or anything else that’s fun for you.
So, set a financial goal, achieve it, and reward yourself. You’ll feel amazing!